HR 1329
112th CONGRESS
1st Session
H. R. 1329
To amend the Internal Revenue Code of 1986 to make the credit for
research activities permanent and to provide an increase in such credit for
taxpayers whose gross receipts are predominantly from domestic production
activities.
IN THE HOUSE OF REPRESENTATIVES
April 1, 2011
Mr. LANCE introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to make the credit for
research activities permanent and to provide an increase in such credit for
taxpayers whose gross receipts are predominantly from domestic production
activities.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. CREDIT FOR RESEARCH ACTIVITIES MADE PERMANENT AND INCREASED FOR
TAXPAYERS WITH DOMESTIC PRODUCTION ACTIVITIES.
(a) Research Credit Made Permanent-
(1) IN GENERAL- Section 41 of the Internal Revenue Code of 1986 is amended
by striking subsection (h).
(2) CONFORMING AMENDMENT- Subsection (c) of section 41 of such Code is amended
by striking paragraph (4).
(b) Increased Credit for Taxpayers With Domestic Production Activities- Section
41 of such Code (as amended by subsection (a)) is amended by adding at the
end the following new subsection:
`(h) Increased Credit for Taxpayers Whose Gross Receipts Are Predominantly
From Domestic Production Activities-
`(1) IN GENERAL- In the case of any taxpayer whose domestic production activity
percentage for any taxable year exceeds 50 percent, this section shall be
applied for such taxable year by increasing each credit determination percentage
by the bonus number of percentage points determined in accordance with the
following table:
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`In the case of a taxpayer whose domestic production activity percentage is: The bonus number of percentage points is:
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More than 50% but not more than 60% 2
More than 60% but not more than 70% 4
More than 70% but not more than 80% 6
More than 80% but not more than 90% 8
More than 90% 10.
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`(2) DOMESTIC PRODUCTION ACTIVITY PERCENTAGE- For purposes of this subsection,
the term `domestic production activity percentage' means, with respect to
any taxable year, the ratio (expressed as a percentage) determined by dividing--
`(A) the taxpayer's domestic production gross receipts (as defined in
paragraph (4) of section 199(c)) for such taxable year, by
`(B) the amount which would be determined under such paragraph with respect
to the taxpayer for such taxable year if the activities described in such
paragraph were taken into account without regard to whether they occurred
in the United States.
`(3) CREDIT DETERMINATION PERCENTAGE- For purposes of this subsection, the
term `credit determination percentage' means--
`(A) each of the percentages appearing in subsection (a), and
`(B) the `14 percent' appearing in subsection (c)(5)(A).'.
(c) Effective Date- The amendments made by this section shall apply to taxable
years beginning after December 31, 2010.
END
